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Bitcoin [BTC] and cryptocurrencies are the biggest bubbles, scams in history, says Nouriel Roubini

Febin Jose

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Bitcoin [BTC] and cryptocurrencies are the biggest bubbles, scams in history, says Nouriel Roubini
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An unceasing critic of Bitcoin [BTC] and other cryptocurrencies, Nouriel Roubini, alleged that cryptocurrencies are the “mother of all scams”, in a recent statement.

In a testimony for the hearing of the US Senate Committee on Banking, Housing and Community Affairs On Exploring the Cryptocurrency and Blockchain Ecosystem, he also said that blockchain was the most “over-hyped technology ever”.

He compared blockchain to a normal spreadsheet and database and said that it was only as effective as them, irrespective of whatever technology it was using.

The financial market expert, popularly known as Mr. Doom for his perpetual bearishness, said that we were in a post-apocalypse world following the cryptocurrency bubble burst a year ago.

He blames the wrong attention for the “maniacal frenzy” for buying Bitcoins and said that it was a breeding ground for illegal activities. He states in his testimony:

“Scammers, swindlers, criminals, charlatans, insider whales and carnival barkers (all conflicted insiders) tapped into clueless retail investors’ FOMO (“fear of missing out”), and took them for a ride selling them and dumping on them scam(my) crappy assets at the peak that then went into a bust and crash – in a matter of months – like you have not seen in any history of financial bubbles.”

Mr. Doom then goes on a wild goose chase mentioning the drop in prices of all cryptocurrencies. He quotes a study that had revealed that “81% of all ICOs were scams in the first place, 11% of them are dead or failing while only 8% of them are traded in exchanges” and calls the current state a true Crypt-Apocalypse.



For a currency to be valid, he says, they need to be a means of payment, should be a serviceable unit of account and a stable store of value. As the markets are volatile, he argues that Bitcoin can never be a currency. Investors and consumers would rather trade BTC to make a profit than use it as a day-to-day currency. He says:

“As is typical of a financial bubble, investors were buying cryptocurrencies not to use in transactions, but because they expected them to increase in value… It is so energy-intensive (and thus environmentally toxic) to produce, and carries such high transaction costs, that even Bitcoin conferences do not accept it as a valid form of payment.”

His testimony then goes on to explain why Bitcoin was deflationary. As they don’t have any intrinsic value and does not track a potential nominal GDP, they will undergo deflation sooner or later.





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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

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1 Comment

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  1. Avatar

    Fuckyoubanks

    October 11, 2018 at 9:14 PM

    This moran is a fucking cock suvking muncher fiat currencie and the banking system is the biggest scam in human kind

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Bitcoin

John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more

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John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
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Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on Coinbase.com, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!



4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!





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